XRP drops to $1.37 amid whale sell‑off and slowing ETF inflows

XRP slipped to $1.37 on the day, a 4% decline from the previous close, while large‑wallet (“whale”) sales and tepid spot‑ETF inflows raised doubts about a near‑term rebound.

Whale activity and ETF demand

Large holders have been offloading XRP, a pattern that historically precedes price drops. Although the exact volume of these sales isn’t quantified, analysts note that “whale accumulation has often appeared before strong price rallies,” and the current lack of accumulation adds pressure to the token’s price action【2】. At the same time, spot XRP ETFs have attracted about $1.39 billion in net inflows this year, but the pace has slowed after a strong May month, limiting fresh liquidity for the token【2】. The combination of reduced institutional buying and active whale selling helped push XRP below its 200‑day moving average of $1.72, a level bulls need to reclaim for a sustained recovery【1】.

Market context and on‑chain fundamentals

XRP remains the fifth‑largest cryptocurrency by market cap, sitting at roughly $85.21 billion with 61.83 billion tokens in circulation【1】. The token’s 14‑day RSI sits in the 42‑44 range, indicating neutral momentum, while both the 50‑day and 200‑day moving averages sit above the current price, reinforcing a bearish technical picture【1】. Since the start of 2026, XRP has fallen about 26% and sits 63% below its July 2025 peak of $3.65, underscoring the depth of the decline【2】. On‑chain, Ripple continues to release up to 1 billion tokens per month from escrow, a supply dynamic that can further weigh on price if release rates accelerate【1】.

Regulatory backdrop

The legal cloud over XRP has lifted after the SEC settlement in August 2025, allowing the token to be traded without securities‑law concerns【1】. However, full regulatory clarity still hinges on the Digital Asset Market Clarity Act, which cleared the Senate Banking Committee in mid‑May but awaits a full Senate vote【1】. The pending legislation could unlock broader institutional participation, but until it passes, banks and other financial firms remain cautious.

What to watch

• $1.72 level – a break above the 200‑day moving average could signal a shift in momentum.
• Escrow release schedule – any acceleration beyond the typical 1 billion tokens per month could increase supply pressure.
• Clarity Act Senate vote – a favorable outcome may boost institutional confidence and ETF inflows.

XRP’s price is now tethered to both macro‑level crypto sentiment and token‑specific supply dynamics. Whether the token can rebound hinges on the balance between whale activity, institutional ETF demand, and the resolution of regulatory uncertainty.